Bitcoin Crashes After the US Government Moves $2 Billion in Bitcoin: What Happens Next?
Bitcoin has been attempting to reclaim its position at $70,000 since the market rejected it over a month ago. It has been dealing with varying levels of opposition for several days. On July 29th, it eventually touched this place, albeit only for a short time. Prices fell to $66,500, smashing multiple support levels and crossing all MAs in their route, despite receiving almost 4% rejection. Let’s look into why this happened and what to expect next.
Multiple Support Factors.
Many variables contributed to Bitcoin’s ability to overcome all resistance levels and hit $70,000 after a month. The most notable address was given by former US President Donald Trump at the Bitcoin Conference 2024 in Nashville.
Trump has openly declared his support for Bitcoin and the cryptocurrency industry. He vowed that if elected, he will not sell the Bitcoin that the US government had confiscated. Instead, he expressed his desire to convert the stolen Bitcoin into
Strategic reserve. Donal Trump has repeatedly expressed his desire to make the United States the largest Bitcoin player. He wants Bitcoin and the entire cryptocurrency ecosystem to thrive in the United States.
The largest resistance
The $70,000 level is one of the most significant resistances because it is a historical ATH for Bitcoin. Experts believe that this will be the most difficult issue for Bitcoin. This level had a lot of sell pressure liquidity, so it couldn’t hold the position and was rejected. MA 20 attempted to hold the price at approximately $69,000, but the ferocity of the selling push broke it. It even surpassed the next support level, $68,000. Following this, traders panicked, forcing the price to drop even lower.
Source: Arkham.
Bitcoin is currently trading at $67,330, however the hourly chart reveals a support level of $66,800 is now serving as a barrier, with the most recent support being 200ΜA.
What to Expect Next?
As of today, the owner of the wallet that received $2.02 billion in Bitcoin from the US government remains unknown. As a result, predicting what they will do next is nearly difficult. It is another government wallet, and they want to use this bitcoin for some purpose, or it was Nobody can be certain that it is only a movement. However, we are confident that some information will become available in the near future. Bitcoin is currently attempting to hold its price as bear power decreases. We can only expect the price to climb again soon as a conducive climate for cryptocurrency develops around the world.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source : Coinpedia